BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2083
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          Date of Hearing:   April 7, 2010

                           ASSEMBLY COMMITTEE ON EDUCATION
                                Julia Brownley, Chair
           AB 2083 (Committee on Education) - As Introduced:  February 18,  
                                        2010
           
          SUBJECT  :   School accountability

           SUMMARY  :   Requires the Superintendent of Public Instruction  
          (SPI) and State Board of Education (SBE) to use the closest  
          approximation, using existing data, of the graduation rate  
          defined pursuant to federal regulations related to Title I of  
          the Elementary and Secondary Education Act, if that rate can not  
          be calculated, in applying the methodology specified in state  
          statute for identifying persistently lowest achieving schools.

           EXISTING STATE LAW  :

          1)Requires the SPI and SBE to identify persistently lowest  
            achieving schools using a specified methodology that includes  
            identification of any high school that has had a graduation  
            rate, as defined in Section 200.19 (b) of Title 34 of the Code  
            of Federal regulations, which is less than 60 percent in each  
            of the previous three years.

          2)Requires the SPI to notify the governing board of a school  
            district, county superintendent of schools, or the governing  
            body of a charter school or its equivalent, that one or more  
            of the schools in its jurisdiction have been identified as a  
            persistently lowest-achieving school.

          3)Requires, for purposes of implementing the federal Race to the  
            Top (RTTT) program, the governing board of a school district,  
            county superintendent of schools, or the governing body of a  
            charter school or its equivalent, to implement one of the four  
            specified reform interventions in any school identified as  
            persistently lowest achieving using the statutorily specified  
            methodology, unless the SPI and SBE determine, to the extent  
            allowable under federal law, that the school has implemented a  
            equivalent reform within the last two years and is showing  
            significant progress in turning around that school.

           EXISTING FEDERAL LAW  requires a state to implement the same  
          methodology for identifying persistently lowest achieving  








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          schools under RTTT to be used for application for awards from  
          the School Improvement Fund (SIF, formerly referred to as School  
          Improvement Grants or SIG) and for application for funding from  
          the School Fiscal Stabilization Fund (SFSF).

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   In February 2009, Congress passed and President  
          Obama signed into law ARRA, which provides billions of dollars  
          of support for education that is being provided to states in the  
          form of both formula and competitive grants.  According to the  
          Legislative Analyst's Office (LAO), California is receiving  
          approximately $6 billion in formula grants.  ARRA also provided  
          nearly $5 billion in funding to be used nationwide in a  
          discretionary manner, including for competitive grant programs,  
          by the U.S. Secretary of Education; this provision of ARRA was  
          the genesis for what has come to be known as the RTTT program.

          According to USDOE, RTTT is, "A competitive grant program  
          designed to encourage and reward States that are creating the  
          conditions for education innovation and reform; achieving  
          significant improvement in student outcomes, including making  
          substantial gains in student achievement, closing achievement  
          gaps, improving high school graduation rates, and ensuring  
          student preparation for success in college and careers; and  
          implementing ambitious plans in four core education reform  
          areas: 

          1)Adopting standards and assessments that prepare students to  
            succeed in college and the  workplace and to compete in the  
            global economy;
           
          2)Building data systems that measure student growth and success,  
            and inform teachers and principals about how they can improve  
            instruction; 

          3)Recruiting, developing, rewarding, and retaining effective  
            teachers and principals,  especially where they are needed  
            most; and 

          4)Turning around our lowest-achieving schools."

          Also according to USDOE, it is possible that California could  
          qualify for up to $700 million in RTTT one-time funding,  
          depending on the nature of the state's plan and various other  








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          factors; however, since this grant program is competitive, it is  
          also possible that California will receive no funding under this  
          program.

          On July 29, 2009, the USDOE issued a preliminary notice of  
          proposed priorities, requirements, definitions, and selection  
          criteria for states applying for RTTT grants.  After a period of  
          extensive public comment and revision, final guidance was  
          released on November 18, 2009.  Phase 1 applications for the  
          grant were due by January 19, 2010; California submitted a Phase  
          1 application and requested $1 billion in funding, but was not  
          named as a finalist for Phase 1.  In late March of 2010 it was  
          announced that two states, Tennessee and Delaware were awarded  
          Phase 1 grants.  States that did not secure a Phase 1 award have  
          been provided reviewers' comments on their Phase 1 applications,  
          and will be allowed to apply for Phase 2 funding prior to a June  
          1, 2010 deadline.  Phase 2 awards will be made in September of  
          2010.  

          Turning around persistently lowest-achieving schools is one of  
          the four major components of RTTT, which requires states to have  
          legal, statutory or regulatory authority to intervene in  
          persistently lowest-achieving schools, identify persistently  
          lowest-achieving schools, and show how the state will support  
          LEAs identified as persistently lowest-achieving in implementing  
          one of four intervention models as follows:

          1)Turnaround model:  Replace the principal and 50 percent of the  
            existing staff; implement strategies to recruit, place and  
            retain staff with the skills necessary to meet the needs of  
            students; use data to improve instructional program; provide  
            high-quality professional development that is aligned with the  
            school's instructional program; among others.

          2)Restart model:  Convert a school to a charter school, or close  
            and reopen a school under a charter school operator, a charter  
            management organization, or an education management  
            organization.

          3)School closure:  Close a school and enroll the students in  
            other higher achieving schools in the LEA.

          4)Transformation model:  Similar to the Turnaround model,  
            replace the principal and develop strategies focusing on  
            principal and teacher effectiveness, instructional reform,  








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            increasing learning time and creating community-oriented  
            schools, and providing operational flexibility and support.

          SB 1 X5 (Steinberg), Chapter 2, Statutes of 2009-2010 Fifth  
          Extraordinary Session, mandates the methodology for identifying  
          persistently lowest-achieving schools by identifying the  
          lowest-achieving five percent of all schools in Program  
          Improvement under the federal No Child Left Behind Act, the  
          lowest-achieving five percent of secondary schools that are  
          eligible for but do not receive Title 1 funds, and any high  
          school with a graduation rate less than 60 percent in each of  
          the last three years.  This methodology also excludes, to the  
          extent allowable by federal law, county community schools,  
          juvenile court schools, schools that provide educational  
          services exclusively to individuals with exceptional needs, and  
          any school that has experienced academic growth of at least 50  
          points on the API over the previous five years, unless the SPI  
          and the SBE find cause not to exclude these schools.  SB 1 X5  
          also authorizes the SPI and the SBE, to the extent allowable  
          under federal law, to exclude a community day school from the  
          definition.  The total number of schools that would be deemed  
          persistently lowest-achieving using this methodology is unknown,  
          but is estimated to be between 100 and 200 schools.  The CDE has  
          implemented a similar, but not equivalent, methodology to  
          identify schools eligible for SIF awards and has identified a  
          total of 188 schools.  In addition, SB 1 X5 requires the SPI to  
          notify the governing board of a school district, a county  
          superintendent of schools or the governing body of a charter  
          school or its equivalent that one or more of the schools in its  
          jurisdiction have been identified as a persistently  
          lowest-achieving school.  SB 1 X5 also requires, for purposes of  
          implementing the federal RTTT program, each of those educational  
          entities with a persistently lowest achieving school identified  
          by this statutory methodology to implement one of the four  
          intervention models required by the RTTT, unless the SPI and the  
          SBE determines that the school has implemented a reform within  
          the last two years that conforms to one of the intervention  
          models.  

          After passage of SB 1 X5, CDE staff notified legislative staff  
          that they would be unable to implement that part of the  
          methodology identifying high schools with a graduation rate less  
          than 60 percent in each of the last three years, because the  
          data necessary to calculate the graduation rate defined in  
          federal regulations and specified in SB 1 X5 were not available.  








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           In fact, CDE staff indicated that a strict application of state  
          statute in this respect would yield zero high schools with a  
          graduation rate, as specified, less than 60 percent in each of  
          the previous three years, since the data was not available to  
          calculate such a graduation rate.

          In order to identify schools eligible for SIF awards, the CDE  
          implemented a methodology that made use of a graduation rate  
          other than that specified in state statute and, thus, other than  
          that defined in federal regulations; CDE's methodology also  
          averaged this graduation rate over a four year period.  This  
          approach identified 5 high schools.  The CDE methodology,  
          however, is clearly not that specified in state statute.  Since  
          the statutory methodology, including the specific definition of  
          graduation rate, must be implemented independent of any federal  
          program, the amendment proposed in this bill is necessary in  
          order to provide authority to the SPI and SBE to use a  
          graduation rate that can be calculated with existing data when  
          implementing the statutory methodology for identifying  
          persistently lowest achieving schools.  By using the best  
          available approximation of the specified graduation rate in each  
          of the three previous years, the SPI and SBE would be able to  
          identify high schools having a graduation rate less than 60  
          percent pursuant to statute and consistent with the intent of  
          the Legislature.

          Committee amendments: Committee staff recommends that the bill  
          be amended to clarify that the closest possible approximation of  
          the specified graduation rate be calculated in each of the  
          previous three years, consistent with the legislative intent of  
          SB 1 X5.

          Previous legislation: SB 1 X5 (Steinberg), Chapter 2, Statutes  
          of 2009-2010 Fifth Extraordinary Session, makes comprehensive  
          changes to the Education Code consistent with the federal RTTT  
          program, and addresses the four RTTT policy reform areas of  
          standards and assessments, data systems to support instruction,  
          great teachers and leaders and turning around the  
          lowest-achieving schools (including establishing the statutory  
          methodology for identifying persistently lowest achieving  
          schools).  AB 8 X5 (Brownley), held at the request of the author  
          in Senate Education, introduced the methodology for identifying  
          persistently lowest achieving schools that was later amended to  
          conform to final federal guidance on RTTT and become the  
          language that was included in SB 1 X5.








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           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          Small School Districts' Association

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Gerald Shelton / ED. / (916) 319-2087